While countries like the US and China have seen strong economic growth over the past decade, allowing corporations to thrive, South Africa stands in stark contrast. The country has made negligible to zero real economic progress.
Corporate-specific challenges have added to the aggravation. There were multiple corporate failures due to mismanagement and over-leveraged institutions that became vulnerable in a structurally low-growth environment . The construction industry is being wiped out, falling victim to a brutal operating environment. Group Five, Basil Read and Esor have all filed for business rescue, with Aveng teetering on the brink of doing so.The mid- and small-cap stocks are, in general, more domestically exposed businesses, deriving a larger portion of their revenues and profits from within South Africa,” says Vanessa van Vuuren, portfolio manager at Sanlam Investments.
He adds that valuations for small stocks averaged around 16 in the 1990s, and came down to eight about 10 years ago.The new normal is four,” he says. He doesn’t expect the extreme multiples of the past, but adds the current levels can easily double when the domestic conditions start allowing for it. It’s affordable. It’s a good start. In fact, an internal assessment conducted by Sanlam Investments shows the potential upside in the mid- and small-cap sector is the highest in close to 10 years.
لقد قمنا بتلخيص هذا الخبر حتى تتمكن من قراءته بسرعة. إذا كنت مهتمًا بالأخبار، يمكنك قراءة النص الكامل هنا. اقرأ أكثر:
مصر أحدث الأخبار, مصر عناوين
Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.
Business Maverick: Limited Liability of Big Tech Under the MicroscopeUS senators used a Congressional hearing on Tuesday to push the idea of overhauling a law that protects YouTube, Facebook and other internet services from being sued for the content users post.
مصدر: dailymaverick - 🏆 3. / 84 اقرأ أكثر »
Business Maverick: Lawyer Who Took on Brexit May Sue Over Suspending ParliamentThe lawyer who won a landmark ruling that allows the UK to reverse Brexit is considering what could be one of several lawsuits seeking to block any attempt to suspend Parliament to force through a no-deal departure from the bloc.
مصدر: dailymaverick - 🏆 3. / 84 اقرأ أكثر »
Business Maverick: US to Withhold F-35 Fighters From TurkeyDonald Trump said the US would withhold sales after Ankara received a new air-defence system from Russia, putting new strains on the North Atlantic Treaty Organization.
مصدر: dailymaverick - 🏆 3. / 84 اقرأ أكثر »
Business Maverick: Wednesday, 17 July: Five Things You Need to Know to Start Your DayDonald Trump threatens more China tariffs. Oil slides on the prospect of easing the geopolitical risk. And North Korea is likely suffering its worst downturn since its 1990s famine. Here are some of the things people in markets are talking about today.
مصدر: dailymaverick - 🏆 3. / 84 اقرأ أكثر »
Business Maverick: A R1.2bn pot of toxic soup at EOHEight people. That’s all. Eight people out of EOH’s staff of 11,500 put the entire organisation at risk through a systematic process of fraud, corruption and bribery that saw R1.2bn of irregular payments flow out of the company between 2014 and 2017. The company believes it has stemmed the rot.
مصدر: dailymaverick - 🏆 3. / 84 اقرأ أكثر »
Business Maverick: Reserve Bank is likely to cut rates, but how low can it go?The SA Reserve Bank is widely expected to cut rates this week, with most economists expecting a 25 basis point cut. With a stagnant economy, there should be a lot more room for monetary loosening, but there probably isn’t, given the economy’s structural challenges.
مصدر: dailymaverick - 🏆 3. / 84 اقرأ أكثر »